JK Tyre charts over Rs 4,000-crore expansion plan

CHENNAI: JK Tyre has announced one of the largest capacity expansion programmes among Indian tyre manufacturers, despite concerns over the impact of the West Asia crisis on raw material prices.

The company has earmarked Rs 4,980 crore to expand the capacities of its truck and bus radial (TBR) and passenger car radial (PCR) tyre businesses by 24% at the Chennai factory and Vikrant tyre plant in Mysuru.

The proposed investment, to be funded through a combination of internal accruals and debt, will be implemented over three years.

The expansion is being driven by robust domestic demand across tyre categories. Export demand has also been factored into the expansion plans. The company's installed capacity, including projects currently under implementation, stands at 210 lakh tyres per annum, with utilisation levels exceeding 90%.

For FY26, JK Tyre reported record consolidated revenue of Rs 16,384 crore, up 11% year-on-year. Consolidated Ebitda rose 25% to Rs 2,089 crore with a margin of 12.8%, while PAT increased 50% to Rs 774 crore.

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